Foreclosure FAQ

Grand Rapids Foreclosures - FAQ's

West Mi Foreclosures Alternatives

Grand Rapids Michigan Foreclosures - what is a foreclosure?

West Michigan Foreclosures are properties that have went through the process of going back to the bank. A property can be foreclosed and still be in the possession of the seller. Grand Rapids Michigan Foreclosures sellers have six months to redeem their properties if the property the home sits on is under 5 acres. Grand Rapids Homes that have over 5 acres have 12 months to redeem their property. Once the home has went through the redemption period and possession has been turned over to the banks, Foreclosed Mi Homes are then put on the market for resale. There are foreclosure alternatives.

Grand Rapids Michigan Foreclosures - what is the process for foreclosure in Michigan?

When the payment is not made on a West Mi home, the bank will send several warnings to the owners of the West Mi Home. After several warnings the home will go to what is called a sheriff sale. In most cases the bank will buy the home back. Once the home goes to sheriff sale it is considered foreclosed, but the bank does not take possession of the home until it goes through the redemption period. The redemption period is six months for homes on under 5 acres and 12 months for homes that are on over 5 acres. This period may be shortened if the bank finds the home abandoned.

Grand Rapids Michigan Foreclosures - what does it mean when the property is in REO?

This is simply a term to describe that the home has went through the sheriff sale and it is in the six or twelve month period where the previous owner may redeem the property.

Grand Rapids Michigan Foreclosures - what does it mean to "redeem" the property?

In order for a previous owner to redeem the property, they usually must pay the complete balance amount due and owing to the bank. For a large portion of lenders, that does not mean the amount the previous owner is behind in payments but the entire balance of the loan.

Grand Rapids Michigan Foreclosures - what can I do to keep the bank from taking my home in the redemption period?

The best thing you can possibly do, is to live in the home and care for it. The bank will only take a home that is not being cared for and seems abandoned. What if you are trying to sell the home as a West Michigan Short Sale, which is a foreclosure alternative, and you can not live in the property? If you can not live in the home and you are actively seeking a short sale, see if you can find someone to rent the home from you. Let them know that the lease must be short term and that if the home is sold, they will need to vacate. They must also work with you for showings. Make sure they know the date the redemption period ends and they must be out. If you can not find someone to live in the home or don't want to mess with it, make sure the home is winterized during cold months. Do this even if you plan to heat the home as you never know when the furnace may malfunction. If the furnace malfunctions, the pipes will freeze and destroy the home. The next thing to do is post a notice on the door that the home is not abandoned and that you are actively seeking a short sale in the redemption period. Put on the notice that Michigan law states that the redemption period may not be shortened on a home that has a real estate sign in the yard with an active listing.

There are risks with purchasing a Grand Rapids Foreclosure home. However, they may be lessened with due diligence. It is always best to be represented by a Grand Rapids Real Estate Agent. An experience buyers agent knows what questions to ask. Many foreclosures are winterized to keep the pipes from freezing. In order to have the home inspected, the buyer may have to assume both the responsibility of having the water turned on in his or her name and to have it re-winterized if the buyer decides not to purchase. The prospective buyer may need to call the municipality to see if there are any code violations on the property and to check if there are any tax liens. There are several other possible risks, but once again, obtaining a good buyers agent

For any other questions please feel free to call me, Tami Vroma, 616-2098626 or email Tami(at)LiveInWestMi.com